Six years have passed since the market reached its historic sales “peak”. It was in 2017, when almost 700,000 units were sold in Argentina. But that momentum was reversed and the sector entered a deep decline, reaching 300,000 operations registered in 2020. “It was the worst year in the last decade,” he does not hesitate to point out. martin schwartzdirector of simp grouptoa national capital company with more than 40 years of operation in the country, which develops manufacturing, importation and distribution in Argentina and the region of machines, motorcycles and recreational vehicles.
From that deep drop, a slow speed recovery began, where the market is seeking to stabilize in the order of 500,000 units. In this regard, the Chamber of Motorcycle Manufacturers (CAFAM) and the Association of Automotive Dealers of the Argentine Republic (TO FACE) reported that, in March, sales of new units increased, based on the number of patents. “A large part of the shots are of national origin, as has been the case for a few years,” the report said.
During the last month, 48,044 motorcycles were patented, which meant a significant increase in relation to the numbers of February and the same time of the previous year, when 42,341 units had been registered. These data show an interannual growth of 13.5%.
In this context, the item shows a particular fact: in the last two years more motorcycles were sold than cars. Because? “The motorcycle has proven to be an excellent option for those who buy their first vehicle or for those who are looking for a more agile alternative, more suitable for the city, with more reasonable entry costs and financing options and, of course, with low operating costs. In the medium and premium segment we see a trend where our consumer, instead of changing the car or buying a second unit, turns to a ‘street’ or ‘dual purpose’ motorcycle. (on-off),” adds Schwartz.
preferences. The local market is not the exception to this reality, but rather adds to a global trend. “In recent years, all the main brands in the world have been strengthening their offer in this category with truly superior products,” the executive explained. Experts in the sector admit that, a few years ago, this preference began to be noticed and a notable growth in the demand for dual-purpose motorcycles and, especially, those of medium displacement. They define it as the phenomenon of “polivalence”. “It allows the user to travel comfortably through the city, with the rest to be able to reach a good speed on the expressways and with a vision generally over the traffic. But mainly this segment gives you the possibility to combine the daily use with the recreational use of the motorcycle. The user makes trips of practically any type and distance, even on a par with motorcycles with higher displacements. Our country has incredible places to shoot and this segment allows an entry ticket that democratizes what was previously exclusively for high-end users”Schwartz notes.
The demand and the profile of the buyers are well identified for the protagonists of this industry. The metropolitan area of Buenos Aires, Córdoba, Rosario, Mendoza and the large cities in the North of the country are the great poles of attraction for the motorcycle market. This is reflected in the numbers: of the total number of motorcycles registered in March, the province of Buenos Aires was the first in the ranking of jurisdictions with the most registered units (15,301), followed by Santa Fe (4,686), and Córdoba ( 4,442), according to CAFAM data.
segments. On the other hand, the type of consumer is heterogeneous. “It is impossible, for instance, to compare the Vespa customer with that of Harley-Davidson, just to cite an example. Although the profile is varied, our work is focused on offering buying, using and, above all, after-sales experiences that are better than those of generalist brands.. We like to say that we sell ‘happiness’ and in order to achieve it it is necessary to live up to the expectations of the most demanding customers”, adds Schwartz.
It should be noted that the Simpa Group represents nine terminals (and multiple brands) of the first global line. Its product portfolio covers all categories of two and four wheels in the “powersports” segment. Always talking about mid-range and high-end units. “In this space we have been leaders for several years. Today, we have some brands that stand out such as KTM, the best-selling premium in the country or, like Royal Enfield, the one that sells the most motorcycles in terms of medium displacement. In this sense, all our brands have shown sustained growth in the last decade”, explains Schwartz.
In addition to making a balance on the number of patented motorcycles, CAFAM and ACARA specified which were the most chosen by buyers during the month of March, among which those with low displacement stand out, that is, 21,053 of 110 cc and 7,068 of 150 DC.
Regarding the chosen brands, ACARA indicated that some changes were observed in the top positions. Despite the fact that Honda remained in the market with 9,547, Coven took second place with 7,004 units, thus surpassing Motomel, leaving it in third place, since 6,787 motorcycles of that brand were registered. Then, in fourth place, Gilera and Zanella, a company that managed to stay third for much of 2022, was placed.
These data have a logical impact on the profitability of the entire chain. The equation that shows the takeoff from the second half of 2020 was the following: a lot of volume, little margin. “As in any industry, premium products are the ones that make the most profit. And reality shows that there is a great demand for low-priced motorcycles”, confesses a connoisseur of numbers. Today, a dealer has an estimated profitability of between 6% and 8% on sales, while that of manufacturing companies can reach 10%.. The other side of an acceleration that still does not leave the desired gain.
by Marcelo Alfano
